3 investment trusts from the FTSE 250 to consider in February

The FTSE 250 has an abundance of different trusts to choose from. Here’s a trio of very different ones that might be worth a look.

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Investment trusts offer a great way to achieve portfolio diversification, making them very popular. In fact, they make up over a third of the entire FTSE 250!

Here are three mid-cap options I think are worth considering today.

Dividends and value

First up is BBGI Global Infrastructure (LSE: BBGI). This Luxembourg-based fund offers an appealing government-backed 7.1% dividend yield, based on 2025 forecasts. That’s more than double the FTSE 250 average.

Created with Highcharts 11.4.3Bbgi Global Infrastructure PriceZoom1M3M6MYTD1Y5Y10YALL31 Jan 202031 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

The high yield’s due to two factors. First, the company has an excellent track record of dividend increases (13 years), driven by the stable nature of the underlying assets. These 56 social infrastructure projects across G7 countries include schools, hospitals, roads, and toll bridges. They earn BBGI inflation-linked revenue.

Second, the share price has dropped 32% in two and a half years, pushing the yield skywards. This is due to higher interest rates that have made cash and bonds look like a safer bet than infrastructure shares. Therefore, a higher-for-longer rate environment or a sudden spike in inflation are risks here.

However, I think the shares look very attractive at 121p.This leaves them 18.4% below the portfolio’s net asset value (NAV) of 148p, as at 30 June.

If and when interest rates move lower, I think the share price could recover strongly as investors reassess the high-quality income on offer.

More dividends

The second option to consider is BlackRock World Mining Trust (LSE: BRWM). This trust invests in mining stocks from around the globe. Top holdings include Glencore, BHP Group, and Rio Tinto.

These mega-miners provide indirect exposure to the green revolution through their production of key materials needed for clean energy technologies. That includes copper, essential for electric grids, wind turbines, and solar panels, as well as nickel, lithium, and cobalt, which are needed in many electric vehicle (EV) batteries.

Now, the risk here is that the performance of these stocks is influenced by the price of commodities, many of which are impacted by goings-on in China. And things haven’t been going well in the world’s second largest economy since the pandemic.

This is reflected in the mining trust’s share price, which is down nearly 30% since the start of 2023.

Created with Highcharts 11.4.3BlackRock World Mining Trust Plc PriceZoom1M3M6MYTD1Y5Y10YALL31 Jan 202031 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

While commodity prices could always take a tumble, threatening mining profits and the trust’s dividend yield, I think the shares are worth considering at 496p. At that price, there’s a respectable 6.7% yield and 8.3% NAV discount.

Going for growth

The final FTSE 250 stock worthy of consideration is Baillie Gifford US Growth Trust (LSE: USA). The focus on US growth shares might be obvious but we’re talking the crème de la crème, including Amazon, Shopify, Netflix, and Instagram owner Meta Platforms.

But what makes this one different from a run-of-the-mill tech fund is its investments in private companies such as rocket pioneer SpaceX and Stripe (internet payments).

Created with Highcharts 11.4.3Baillie Gifford Us Growth Trust Plc PriceZoom1M3M6MYTD1Y5Y10YALL31 Jan 202031 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

One risk here is a sudden slowdown in artificial intelligence (AI) infrastructure spending. That might damage investor sentiment for top holdings like Nvidia, leading to pressure on the trust’s share price.

Longer term though, I see this as a solid option for direct and diversified exposure to the global technological revolution. A 9% discount to NAV adds weight to the investment case, in my opinion.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Ben McPoland has positions in Bbgi Global Infrastructure, BlackRock World Mining Trust Plc, and Shopify. The Motley Fool UK has recommended Amazon, Meta Platforms, Nvidia, and Shopify. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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